How much should I budget for everything?

[globetrotter]

I hope I'm not asking a question that is obvious. How much should I be budgeting for everything as a percentage of my salary? Are there some general rums out there? What percentage of our income should go toward the mortgage, what percentage toward food, what percentage toward utilities? I hope this isn't too broad a question.

[Tree0164]

Re: How much should I budget for everything?

From practical money matters site:

This chart shows some rough guidelines on how much of your income should go toward different expenses. If you live in an area where transportation is higher than normal or rents/mortgage are higher, you may need to make adjustments. Also, if you would like to add a section for gifts, or something else, then you'll need to subtract from another area.

30% Housing
18% Transportation
16% Food
8% Miscellaneous
5% Clothing
5% Medical
5% Recreation
5% Utilities
4% Savings
4% Other Debts

[sarah]

Re: How much should I budget for everything?

I think the savings percentage is a little low. Most advisers suggest 10% of at least net if possible. Non-mortgage debt is also a category that could and probably should be eliminated (over time). Also I think that 16% for a family in the United States is a little high. 10 or even possibly 8 % depending on income is more in the fruga range.(Although I admit I have problems with my food bill and debt reduction is definetly a problem)

I am talking about net not gross income.

[Tree0164]

Re: How much should I budget for everything?

I agree Sarah. I just pulled that offline for some general guidelines. Ideally, we try to save 10% of our income-10% from dh check goes into his 401k. I contribute to a Roth. I have even heard guidlelines of saving 20% of income-we are no where near that. Probably more so at the 8% if you include my self-employment income.

Food for us is probably closer to 10%. I have heard the average of 11-12% of income on other budgetting boards over the years.

[globetrotter]

Re: How much should I budget for everything?

Thank you for the information. That was exactly what I was looking forward. A basic idea of where expenses should be. I will go through and see how we compare this week.